OpenDoor for Instant IBuying — The US Real Estate Fintech

The SPAC trend continues in the US and Chamath Palihapitiya is one of the leading investors with his IPOA, IPOB,… series. One of the recent Fintech deals was focused on a real estate disruptor in the US, OpenDoor.

With Zillow, being the blue-chip name and already public, I wanted to dig into how OpenDoor`s positioning differs. Technology with all the B2B Software as a Service offerings (Saas) makes it so challenging to create and sustain a moat.

The secret sauce of a fintech business in real estate is not evident because the US real estate market is on the one hand mature but also very fragmented. On top of that, there are several uncertainties and moving pieces of the puzzle due to the current macro-economic environment and the emerging new normal life-style trends.

I listened to Chamath`s pitch and read several Seeking Alpha articles with facts & figures and investment centered opinions on Zillow, Redfin, OpenPad, and OpenDoor.

Real Estate Fintech is focused on (a) digitizing the real estate brokerage processes, (b) creating online platforms to list and facilitate matchmaking of properties, © create online platforms that use their balance sheet to buy properties acting as middlemen.

ibuying is core to Real Estate Fintech. I for Instant.